More Bailout Money – “U.S. May Convert Banks’ Bailouts to Equity Share”

Hey, Amerika!

In a significant shift, White House and Treasury Department officials now say they can stretch what is left of the $700 billion financial bailout fund further than they had expected a few months ago, simply by converting the government’s existing loans to the nation’s 19 biggest banks into common stock.

Converting those loans to common shares would turn the federal aid into available capital for a bank — and give the government a large ownership stake in return.

While the option appears to be a quick and easy way to avoid a confrontation with Congressional leaders wary of putting more money into the banks, some critics would consider it a back door to nationalization, since the government could become the largest shareholder in several banks.

The Treasury has already negotiated this kind of conversion with Citigroup and has said it would consider doing the same with other banks, as needed. But now the administration seems convinced that this maneuver can be used to make up for any shortfall in capital that the big banks confront in the near term.

The complete New York Times report can be found here.

So, have you been wondering whether or not Uncle Sam is nationalizing or socializing private business?

It’s worse!  Uncle Sam is doing both nationalizing and socializing.  Hmm, where have I heard that before?

Nat… Soc…   Now I remember.

It’s the very definition of the German word “NAZI”!

Funny how Americans died to defeat NAZI Germany, and the Cold War with Russia only to implement their policies here in our own country.

Nice going, Uncle Sam.  You sly old man, you! 

You are so screwed, Amerika!